Thus, the moving average cost of the green widgets was $5 per unit at the beginning of the month, and $5.88 at the end of the month. We will repeat the example, but now include several sales. Remember that we recalculate the moving average after every transaction.
Finally, pass-through billing is an arrangement in which a laboratory tests samples provided by a physician for a fee, and allows the physician to profit by billing payers directly for the laboratory services for more than the physician paid the laboratory. This approach is typically avoided for Medicare and Medicaid patients by most physicians.
FIRST PASS YIELD The FPY is defined as the number of products coming out of a process divided by the number of products going into that process over a specified phase of time. Only good units with no rework are counted as coming out of an individual process. FPY, also known as Throughput Yield (TPY).